Prosperity Q3 EPS $1.18 as Stellar Merger Costs Hit; Dividend Raised 6.67% to $0.64
PB is trading near its 52-week low of $62.58 (11% above the low).
Summary
Prosperity earned $1.18 per diluted share in Q3 2026, or $1.67 excluding $69.7 million of Stellar merger costs and a $5.0 million tax settlement, and raised the quarterly dividend 6.67% to $0.64.
Key Events · Earnings and Guidance · PB
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Q3 EPS $1.18, $1.67 Adjusted
Net income of $141.5 million, or $1.18 per diluted share, versus $137.6 million and $1.45 a year earlier; excluding $69.7 million of merger expenses and a $5.0 million tax settlement, net income was $200.8 million, or $1.67 per share.
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Dividend Raised 6.67% to $0.64
Fourth quarter 2026 dividend of $0.64 per share, up $0.04, payable January 4, 2027 to holders of record December 15, 2026 — the 23rd consecutive annual increase.
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Margin Expands 26 Basis Points
Tax-equivalent net interest margin rose to 3.73% from 3.47% in Q2 2026 and 3.24% a year ago, driven by the mergers and asset repricing; net interest income jumped 62.0% to $443.0 million.
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Credit and Capital Deteriorate
Nonperforming assets rose to $193.9 million, or 0.41% of average interest-earning assets, from 0.34% at June 30, 2026; tangible book value per share fell to $39.71 from $43.48 and CET1 to 13.46% from 15.94% after the Stellar deal.
Analysis · PB · Finance
Stellar merger expenses of $69.7 million and a $5.0 million out-of-state tax settlement cut reported net income to $141.5 million, or $1.18 per diluted share; excluding those items, earnings were $200.8 million, or $1.67 per share. The margin did the heavy lifting — net interest margin rose 26 basis points to 3.73% on a tax-equivalent basis as the acquired loan book repriced. Management's confidence that the merger math will hold is clearest in the board's 6.67% dividend increase to $0.64 a quarter, the 23rd straight annual raise. The offsets: nonperforming assets climbed to 0.41% of average interest-earning assets from 0.34%, tangible book value per share fell to $39.71 from $43.48 on Stellar goodwill and intangibles, and CET1 dropped to 13.46% from 15.94%.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.5% of the 1494 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.03%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PB was trading at $69.60 on NYSE in the Finance sector, with a market capitalization of approximately $8.4B. The 52-week trading range was $62.58 to $77.20. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.